Third-quarter 2016 business activity was strong in the majority of the Group’s markets
. Revenue totaled €1,538 million, up 1.8%
at constant scope of consolidation and exchange rates (LFL), and up 3.0%
Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said: "During the third quarter, AccorHotels has once again delivered a robust performance that is even more remarkable given the particularly unfavorable situation in France during the summer following the terrorist attacks.
With the integration of Fairmont, Raffles and Swissôtel during the period, the Group has established itself as a leading player in the global luxury hotel business. Our brands are attractive, our development is dynamic and our active management strategy for the HotelInvest property portfolio continues to deliver results. Thanks to these strengths, we have been able to hone our outlook for 2016 and consolidate the significant improvement in our operational and financial performance."Third-quarter 2016 highlights:
Favorable outlook maintained
- Robust growth in all of the Group's key markets, except France and Belgium
- Record development, with the opening of 51,391 rooms, of which 116 hotels and 43,195 rooms relating to the integration of the FRHI group
- Announcement of the "Booster" project to turn HotelInvest into a subsidiary
- Launch of the JO&JOE brand, dedicated to Millennials
- Exclusive negotiations to acquire a majority interest in John Paul, the world leader in concierge services
In third-quarter 2016, AccorHotels continued to benefit from positive business trends in the vast majority of the Group's key markets, with growth in RevPAR in the United Kingdom, Southern Europe, Central Europe, North America, Latin America and Asia-Pacific.
The Group's main points of vigilance continue to be Belgium and France. The latter experienced a particularly sharp decline in demand in the third quarter, when the portion of leisure-related business is traditionally higher.
The integration of the FRHI hotels in the AccorHotels network contributed €145 million in revenue in third-quarter 2016, and thanks to their solid business activity, particularly in the Americas and Asia-Pacific, they should continue to generate a robust contribution during the fourth quarter.
Development continues apace, with the opening of nearly 28,000 rooms on an organic basis since the beginning of the year (up 18% compared with 2015) and the prospect of record growth in 2016.
In light of these factors and the expected continuation of the trends observed since the beginning of the year in its different markets, the Group expects full-year 2016 EBIT to amount to between €670 million and €690 million
FIRST-HALF 2016 RESULTS
- Revenue up 2.0% (LFL) to €2,598 million
- EBIT down 4.0% (LFL) to €239 million
- Net profit, group share of €74 million
Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said: "With several of our key markets, including France and Brazil, shaken by crises and violent events, the Group showed remarkable resilience in the first half of 2016. We continued to invest heavily in order to grow, transform and gain a foothold in new businesses that are destined to become fundamental for the Group.
We will pursue this offensive strategy in the coming months. Our presence in 95 countries, our leadership positions in Europe, Asia-Pacific, Latin America, Africa and the Middle East, and our strength as the world's leading hotel operator covering all segments from economy to luxury give us a major competitive edge. Combined with the launch of a project to turn our property division into a subsidiary and a strategy that gives priority to customer-focused innovation, these strengths will be the drivers of our future growth.
"First-half 2016 highlights
- Robust growth in all of the Group's key markets, except France and Brazil
- Record development, with the opening of 19,366 rooms, 90% of which under franchise or management contracts
- HotelInvest: Considerably improved performance, driven by restructuring
- HotelServices: Stable operating performance in the first half, before the impact of commitments relating to the digital plan, the deployment of onefinestay and the AccorHotels marketplace
Strategic transactions in first-half 2016
- Further asset restructuring, with the restructuring of 120 hotels, of which
- 85 hotels in Europe transferred to Grape Hospitality
- 12 hotels transferred to Huazhu
- Preparation of the project to turn HotelInvest into a subsidiary
- Acquisition of the Fairmont Raffles Hotels International Group, with 98% support at the Shareholders’ Meeting of July 12, 2016
- Recruitment of 1,600 independent hotels, gradually integrated into the marketplace accorhotels.com
- Continued implementation of the digital plan
Creation of a world leader in luxury residential rentals
- Acquisition of onefinestay, the world leader in luxury serviced home rentals
- Acquisition of 30% of Oasis Collections, a digital platform offering a selection of apartments and associated services
- Acquisition of 49% of Squarebreak, an innovative digital platform offering upscale villas in France